Feasibility Study and Analysis: Duplex Construction Project

This project feasibility study examines the development of duplex houses for over 10,000 residents. The study focuses on a specific property in Bathurst, New South Wales, analyzing costs, including stamp duty, conveyancing fees, and construction expenses. It outlines project goals, constraints, and the rationale for property selection based on location and convenience. The report delves into macro-environmental factors such as economic stability, competition, resource availability, and demographic considerations, alongside micro-environmental factors like technical expertise, time pressures, and people-related considerations. The analysis includes financial projections, such as monthly rental income, agent fees, and landlord insurance, concluding with a recommendation for investment based on cost-effectiveness and favorable returns. The study aims to provide a comprehensive overview of the project's viability, considering both internal and external influences.

PROJECT FEASIBILITY
STUDY AND TIMELINE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Constraints and goals..............................................................................................................1
Macro environment business drivers......................................................................................3
Micro environment business drivers......................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
APPENDIX......................................................................................................................................9

INTRODUCTION
To ensure profitability by obtaining an initiation for project, there has been
implication of feasibility analysis. This technique helps in determining benefits to investors
on the proposed project. It brings information based on technical and economic feasibility for
the project idea. Considering the operational activities and various tasks will ascertain proper
analysis on costs and expenses made on proposed project of developing duplexes. In the
present report, there will be discussion on selection of a property, analysing it on cost basis to
demonstrate requirement of funds in operating Duplex construction projects. Along with this,
there will be discussion made on various macro and micro factors which will be helpful as
per meeting goals in the right time.
Constraints and goals
There has been requirement of various resources which will be adequate in making
better analysis and determination of all the sources. It has been aimed by the professionals
that they will require land for constructing duplex houses for more than 10000 residents.
However, to perform such projects, there will be requirement of $800000 for the further
investments and goals (Costello and et.al., 2017). Moreover, considering the goals of
professionals in performing such duties will be analysed as:
Goals:
 Developing the cost efficient residential houses for more than 10000 citizens in
Australia
 Identifying the best location for better construction (Mukherjee and Roy, 2017)
 Ascertaining the builder from which contractual agreements will be signed
 Determining all legal and ethical requirements in purchasing land and making
construction of building
Constraints:
Selecting the suitable location as well as costs implied in purchasing of property is
based on various planning and observation. Monitoring costs which will be utilised in the
purchase of property and making construction of buildings will be monitored in relation with
suggesting appropriate alternatives (Hidalgo-Mazzei, Vieta and Colom, 2015). Moreover, the
project objectives on which professionals have been suggested to make investments in
property will offer 563 Duplex buildings.
1

Figure 1: Duplex map
(Source: 347 Russell Street, Bathurst NSW 2795, 2018)
347 Russell Street is located in Bathurst, New South Wales 2795 which has the
approximate costs of $525000. Thus, there will be implications of various costs which were
being imposed by Australian government over the property. Stamp duty of $19115 as well as
conveyancing fees of $1100 has been payable as legal charges (stated in Appendix). By
constructing the duplex buildings, there has been estimation of area which will require 16.41
meters in 668m^2 of area. Developing planning fees will be payable on such investment as of
$1938, monthly costs for $2396 (Sullivan and et.al., 2016).
Further, operating business activities to identify a suitable builder will be helpful in
bringing promptness in construction. Also, use of good quality material as well as cost
efficiency with implications of various regulation will help in bringing fruitful analysis on
property (Lanfranchi and Giannetto, 2018). Authority in developing the duplex building on
which these rights have been assigned to Sandy Fairbrother will cost Duplex Construction for
$2999. Thus, on this, duplex estimated value will be considered by professionals as $800000.
Considering these estimations on which monthly rental income is forecasted will be around
$600, monthly agent fees of $150 and the landlord insurance of $65.
2

Therefore, these requirements help in gaining outcomes on the purchase of this
property which demonstrates that equity value of duplex will be approx. $800000 on which
total outgoings have been gained as $249848. On the other side, monthly rental income which
of $600 and after adding the holding cost, it will become approx. $2010.58 (as stated in
appendix). Moreover, it will be suggested that investing in this project will be profitable as it
will be very cost effective and bring the favourable returns.
Rationale
In order to select this location is because of the convenience of this place. It is near to
the local market as well as has less distance from public transportation sites. Moreover, the
residential area is widely spread in the location which will be helpful in developing a society
at the particular location.
Macro environment business drivers
Influences of various economic factors are abounded by operations performed in
business for the long run (Ciccone and et.al., 2017). Moreover, there can be various elements
which are needed to be considered before making plans for the projection. There can be
various macro environmental factors which are needed to be considered by professionals
before investing in the projects such as:
Economic: Australia has been known as the most developed and stable economy
across world. Thus, the living standard and per capita income of residents are comparatively
appropriate in nation. It determines favourable GDP rate as per higher domestic production.
These factors also insist consumer’s decision-making procedures (Coca and Sliško, 2017).
On the other side, by considering various rules, regulations and taxation environment in
Australia as per completion of period of 5 years, the business has to make payment of capital
gains through rental income by these properties.
In the population of more than 10,000 citizens, there has been variation in level of
income or earning capacity in buying property at cheapest rates (Ascione and et.al., 2015).
Similarly, they will also seek for better control convenient facilities and less rent payable on
the property which will balance their budgets and fulfil dream of acquiring house.
Competitive: Rivalries stated in location will affect revenue generation as well as
operational practices of the business. There are various builders and constructors which are
offering lower costs implied on construction which may affect the consumers for business.
They triggered the cost efficiency and sensitivity of consumers in respect with investment
3

made in each property. Thus, this approach helps them in fetching higher attention as well as
better competition on projects (Hsu and et.al., 2015).
Resourcing: Construction industry mainly seeks for proper quantity and quality of
material to be used in making construction operations. Thus, there will be requirement of best
quality technologies which will be used in developing the proper construction as well as for
making effective operational developments (White and et.al., 2018). Technical influences
will be fruitful as these bring promptness in the time utilised for construction as well as
proper allocation of all resources in such operations. On the other side, availability of natural
resources in location which are used in construction such as water and human capital will
also affect operations.
Thus, the number of labour force which are engaged in this project will bring efficiency
in practices but also affect the costs implied in activities (Xia, Yan and Gao, 2017).
Therefore, it is necessary that business must make proper records of all operations as well as
management of resource utilisation in practices. It will be helpful to them in raising the
operational practices as well as bringing appropriate control on operations.
Demographic factors: Differences in location, religion, caste, age, race, etc. in the
workforce are the serious issues which are needed to be considered by business (Nguyen,
Fairclough and Noll, 2016). There can be influences of various issues which indicate the
demographic obstacles in work practices. It is required that analysing the employee’s needs
will be helpful in completion of project within proper time limit as well as efforts in
operations.
On the other side, for building duplex houses for more than 10000 citizens on which
there will be differences like opera race, economic standards, religion etc., builder has to
consider variations and offer equal prices set on these properties (Taheri and Taheri, 2017). It
is required that business must consider operational requirements and practices on the basis of
such costs and operations.
Micro environment business drivers
Performing activities as well as enhancing the business efficiency will be required to
have better operational management and control on each task. Impacts of various internal
factors reduce operational quality and efforts of workforce in the completion of project on
required time. It can be due to poor internal management as well as requirements of
workforce in the course of action (Doizi and et.al., 2017). Moreover, there can be various
factors which will affect the operations of business that can be analysed such as:
4

Technical/ internal expertise: The operational criteria and efforts made by
individuals in due respects will have negative influence on business environment. It will also
affect the growth and profitability of entity in terms of operating business activities. It is
required that there will be proper training and development of employees in respect with
using technologies as well as managing various operations in the firm. The main emphasis of
an organisation needs to be concerned on learning and development of employees (The
Impact of Micro and Macro Environment Factors on Marketing, 2017).
Similarly, in the construction units, there will be presence of various technical
devices, gadgets as well as upgraded techniques to operate activities. Thus, it is required that
the business must train their employees in operating such devices and make a productive use
from it. Rise in the skills, talent and level of operational practices will be helpful for
qualitative increment in all functions of entity. It helps in bringing the uniqueness and
effective differentiation for operating activities in business activities.
Time Pressures: It can be explained as limiting schedules and allowing professionals
in making qualitative efforts for attaining targets. Professionals have been forced and
centralised for making the efforts in attaining huge success and managing operations in due
course. There will be requirement of performing tasks and completion of work before the
deadline. Thus, this thing pressurises workforce, business and various stakeholders which are
operating the activities in firm (Ma, Yang and Lu, 2014).
Similarly, in relation with making the construction of duplex houses for 10000
residents will be a big task which will consume higher costs implied on labour, material as
well as utilisation of much time in this process. Thus, it will create pressure on the employees
and unit to work according to requirements. Time utilised in each activity will be managed
and executed by the managers as per not putting workforce in work pressure as well as the
quality of operations will be up-to expectations. Moreover, it is necessary that all functions
and activities performed by an entity must be time bound and have appropriate determination
of all operations.
People related considerations: There have been various issues and operational
obstacles which in turn affect the organisational culture. This internal factor is needed to be
monitored by the professionals in an entity as per making better operational control.
Remuneration payable to the employees is also the main concern for an organisation which is
needed to be acknowledged and monitored for having productive results. Analysing their
needs and paying them as per their skills, level of operations as well as desired wants will
5

bring satisfaction to them. On the other side, the personal needs of workforce are based on
various allowances, insurance and retirement relevant issues which are needed to be resolved
(Coca and Sliško, 2017). It will bring them support in managing their financial conditions and
requirements of funds in each operation.
Similarly, in construction unit, there will be requirements of effective legal and ethical
influences such as facilitating the proper insurance services to each employee as well as
bringing them various financial allowances that will positively affect their living standard. It
is the main responsibility of construction unit to ensure safety of all individuals who are
working on site. There will be higher chances of having damages, accidents and threats to the
life on which employee consideration and management of operations will be helpful in
bringing them support.
CONCLUSION
As per the above study, it can be concluded that development of duplexes for more
than 10000 people must have proper administration of costs utilised in it and time taken by
professionals with better operational control. Property has been selected and determined by
the professionals which will fit in the budgets. New South Wales has been the best location
for completion of this project. Thus, as per selecting location for the project, the costs have
been analysed such as stamp duty, conveyancing fees, etc. which bring information relevant
with total fund required in this plant. Further, report has also reflected information based on
various micro and macro environmental factors which will affect the operations of business.
It has been articulated from the study that analysing the issues and making effective solution
to each obstacle will be effective in succession of proposed project.
6

REFERENCES
Books and Journals
Ascione, F. and et.al., 2015. Energy retrofit of an educational building in the ancient center of
Benevento. Feasibility study of energy savings and respect of the historical
value. Energy and Buildings. 95. pp.172-183.
Ciccone, N. and et.al., 2017, August. The Wangi (talking) project: a feasibility study of a
culturally sensitive rehabilitation model for Aboriginal people with acquired
communication disorders after stroke. In INTERNATIONAL JOURNAL OF
STROKE (Vol. 12, pp. 26-26). 1 OLIVERS YARD, 55 CITY ROAD, LONDON
EC1Y 1SP, ENGLAND: SAGE PUBLICATIONS LTD.
Coca, D. M. and Sliško, J., 2017. Software Socrative and smartphones as tools for
implementation of basic processes of active physics learning in classroom: An initial
feasibility study with prospective teachers. European Journal of Physics
Education. 4(2). pp.17-24.
Costello, A. G. and et.al., 2017. Shared Care of Childhood Cancer Survivors: A Telemedicine
Feasibility Study. Journal of adolescent and young adult oncology. 6(4). pp.535-541.
Doizi, S. and et.al., 2017. First clinical evaluation of a new single-use flexible ureteroscope
(LithoVue™): a European prospective multicentric feasibility study. World journal of
urology. 35(5). pp.809-818.
Hidalgo-Mazzei, D., Vieta, E. and Colom, F., 2015, December. Self-Monitoring and
Psychoeducation in Bipolar Patients with a Smart-phone application (SIMPLe)
project: Preliminary results from a feasibility study. In Proceedings of the 5th EAI
International Conference on Wireless Mobile Communication and Healthcare (pp.
227-230). ICST (Institute for Computer Sciences, Social-Informatics and
Telecommunications Engineering).
Hsu, M. H. and et.al., 2015. Individual music therapy for managing neuropsychiatric
symptoms for people with dementia and their carers: a cluster randomised controlled
feasibility study. BMC geriatrics. 15(1). p.84.
Lanfranchi, M. and Giannetto, C., 2018. A feasibility study for a project of alternative energy
production in an agritourism business in Sicily. International Journal of
Environmental Studies. 75(2). pp.334-342.
Ma, T., Yang, H. and Lu, L., 2014. Feasibility study and economic analysis of pumped hydro
storage and battery storage for a renewable energy powered island. Energy
Conversion and Management. 79. pp.387-397.
Mukherjee, M. and Roy, S., 2017. Feasibility Studies and Important Aspect of Project
Management.
Nguyen, C.T., Fairclough, D. L. and Noll, R. B., 2016. Problem-solving skills training for
mothers of children recently diagnosed with autism spectrum disorder: A pilot
feasibility study. Autism. 20(1). pp.55-64.
7

Sullivan, C. M. and et.al., 2016. Disseminating the community advocacy project in Mexico: a
feasibility study. Journal of interpersonal violence, p.0886260516663901.
Taheri, M. J. and Taheri, P., 2017, October. Feasibility study of cogeneration for a gas power
plant. In Electrical Power and Energy Conference (EPEC), 2017 IEEE (pp. 1-5).
IEEE.
White, S. and et.al., 2018. Assessment of the Area of Review and Leakage Impact for Site 7
using the NRAP-IAM-CCS Tool, Northern Michigan Basin-CarbonSAFE Phase 1
Pre-Feasibility Study (No. LLNL-TR-753788). Lawrence Livermore National Lab.
(LLNL), Livermore, CA (United States).
Xia, W., Yan, Z. and Gao, X., 2017. Volume fractions of DCE-MRI parameter as early
predictor of histologic response in soft tissue sarcoma: A feasibility study. European
journal of radiology. 95. pp.228-235.
Online
347 Russell Street, Bathurst NSW 2795. 2018. [Online]. Available through:
<https://www.domain.com.au/347-russell-street-bathurst-nsw-2795-2014454272?
topspot=1>.
The Impact of Micro and Macro Environment Factors on Marketing. 2017. [Online].
Available through: <https://blog.oxfordcollegeofmarketing.com/2014/11/04/the-
impact-of-micro-and-macro-environment-factors-on-marketing/>.
8

APPENDIX
Project Feasibility
1. Land Information
Land Address: 347 Russell Street
Suburb/Town: Bathurst NSW 2795
Land Size: 668
2. Purchase Information
Land Price: $525,000
Stamp Duty: $19,115
Conveyancing Fees: $1,100
3. Local Council Information
Local Council Name: New South Wales
Minimum Land Allotment Size: 16.41
Development Planning Fees: $1,938
Monthly Council Rates: $2,396
4. Construction Information
Builder Name: Sandy Fairbrother
Duplex Construction Costs: $2,999
5. Duplex Information
Duplex Estimated Value: $800,000
Monthly Rental Income: $600
Monthly Agent Fees: $150
9

Monthly Landlord Insurance: $65
6. Project Results
Equity Value = Duplex Value of $800000 less
Total Outgoings of
$550152
equals
$249848
Net Monthly Rental
Income = Gross Monthly Rent of $600 less
Holding Costs of
$2610.58
equals $-
2010.58
10

Project timeline:
Project Timeline
W
ee
ks
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38
Settlement
Period on
Land
Purchase
Identifying
the location
analysing
needs of
people
Discussing
ideas with
other
professionals
analysing cost
11

implied in
activities
Council
Development
Approval
Registering
the land
acquisition of
ownership
disclosing
transparent
information
regarding cost
or financial
needs
Duplex
Construction
Assigning
duties to
employees
development
12

of appropriate
operational
criteria
controlling
cost
Blue print of
overall
operations
13